S&P Global Ratings expects that Ukraine is likely to receive a new disbursement from the International Monetary Fund (IMF), Ukraine`s key lender, in the first half of 2017.
”Since the beginning of last year, the IMF has disbursed over US$7.6 billion of the $17.5 billion available under the four-year Extended Fund Facility (EFF) program. Our ratings on Ukraine factor in our assumption that the government will remain broadly on course with the IMF program and engaged with development partners, albeit with some continued lags. The next tranche of IMF funds, along with the associated external donor funds, is likely to be disbursed in the first half of 2017. While the bulk of IMF funds are lent to Ukraine`s central bank to boost foreign exchange reserves, continuation of the program requires Ukraine to be fiscally prudent and meet IMF requirements to unlock other funds from the EU and other donors. The latter have explicit or implicit IMF conditionality,” the agency said in its Research Update on Ukraine.
As UNIAN reported earlier, Ukraine resumed cooperation with the IMF under a four-year Extended Fund Facility (EFF) volume of $17.5 billion in September – after more than a year`s break. Under this program, the country has received three loan tranches totaling $7.62 billion. On November 18, a statement was issued on the results of the work of the latest mission in Ukraine, according to which the adoption of the government`s state budget for 2017, consistent with the EFF targets, is one of the conditions for the successful completion of the third revision of the program. In addition, the Fund expects that financial stability is maintained in Ukraine and the measures aimed at combating corruption continue.
The Ministry of Finance of Ukraine hoped that the IMF would be able to discuss the reforms in Ukraine before the end of the year.
Meanwhile, the IMF has not yet decided on the date of a meeting of the Executive Board on Ukraine and does not rule out that the discussion of Ukraine`s reform program and a decision on the fourth tranche worth $1.3 billion will be postponed until the next year.